The $1.25 billion acquisition of Ripple's Prime Broker Hidden Road is a “critical moment” for blockchain payments companies and could unlock more use cases across institutions, said David Schwartz, Chief Technology Officer at Ripple.
“Ripple's acquisition of Hidden Road is a critical moment for the XRP ledger and XRP,” Schwartz said on social media on April 8th.
Hidden Road is a leading brokerage and credit network with clients from over 300 institutions. On a typical day, it clears over $10 billion and processes over 50 million transactions across traditional railroads.
“Imagine even part of that activity on the XRP ledger now — that's exactly what Hidden Road plans to do, let alone future use of tokenized collateral and real-world assets in XRPL,” Schwartz said.
Source: Ripple
Ripple has long promoted the XRP ledger as a scalable platform for real-world assets (RWAS), and partnered with Crypto Exchange Archax to launch a tokenized money market fund in November.
However, up until now, XRP ledgers have been tokenized at a minimum. Industry data only tracks two RWAs in the XRP ledger, which are valued at around $50 million.
The XRP ledger has not yet taken off as a tokenization platform. Source: rwa.xyz
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The RWA market continues to expand
The value of Onchain RWAS has increased by 9.2% over the past 30 days, beating the common downtrends in cryptocurrency markets related to the fear of global growth and the harsher financial situation. According to RWA.xyz, the number of asset owners increased by 6.2% over that period.
Traditional financial analysts expect to see RWA, which was tokenized by 2030, become a trillion dollar market by 2030, with a large address market beyond bonds, commodities, equities, real estate and M2 money supply.
Various estimates show that tokenized securities could reach at least $2 trillion by 2030. Source: Tokenized Asset Alliance
Some of the world's largest companies have already experimented with tokenizing assets, and CME Group and Google have recently partnered to explore how Google Cloud Universal Ledger can improve capital market efficiency.
Prometheum CEO Aaron Kaplan recently told Cointelegraph that US regulatory conditions are ripe for tokenization to take off. The biggest gap in recruitment is the lack of secondary markets to buy and sell tokenized assets. However, this could change soon as crypto companies and traditional brokerage companies compete for market share.
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